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Financial Options


 

PURCHASE

  • A sale transaction where the customer purchases the asset for a fixed amount.

FINANCE LEASE – $1 BUY OUT

  • 100% financing of the asset allowing the customer to complete the investment without capital outlay.
  • At the end of a fixed lease term the lessee “customer” can acquire the asset for a $1 and the ownership of the asset transfers to the lessee.

OPERATING LEASE

  • A lessee “customer” makes rental payments for a fixed term, during which no equity accrues on the asset.
  • At the end of the lease term: The customer may renew the lease, return the modular building or it can be purchased at future fair market value.

MUNICIPAL LEASE PURCHASE

  • This lease if for Government agencies that have the intent to purchase and take title to the asset.
  • The financing is a full payout contract with no significant residual or balloon payments at the end of the lease term.
  • The lease payments include the return of principal and interest, with the interest being exempt from income taxation.

    • The Municipal Lease provides for termination for non-appropriation of funds by the Government Agency